Telecom NZ to cut hundreds more jobs in coming months

WELLINGTON Thu Feb 21, 2013 4:41pm EST

WELLINGTON Feb 22 (Reuters) - Telecom New Zealand will cut hundreds of jobs as part of its ongoing restructuring plan as the country's largest telecommunications company struggles to keep up with competition in its broadband markets.

"It is pretty apparent that it will be well into the hundreds (of staff cuts) over the next few months," Telecom Chief Executive Officer Simon Moutter told reporters after the company downgraded its earnings outlook for the year ending June.

The job losses would follow roughly 350 cuts to date.

Telecom said it additional restructuring measures could impact its bottom line this year, adding that it would announce details in May.

However, the top-10 company's share price rose 1.1 percent to NZ$2.23 after it reported a rise in operating earnings, even as net profits fell as a result of one-off factors. (Reporting by Naomi Tajitsu)

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